Economy

FG to spend $2.3bn on 1st phase of Presidential Power Initiative- Minister

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The Minister of State for Power, Mr Goddy Agba says the Federal Government plans to spend 2.3 billion dollars on the first phase of the Presidential Power Initiative (PPI) projects aimed at increasing the nation’s power transmission capacity to 7,000MW.

The Minister disclosed this during the Nigerian Energy Forum (NEF 2020) Webinar in Lagos, tagged “Energy Solution for Sustainable Recovery” on Thursday.

According to Agba, the various interventions are grouped into phases with the near term objective being to increase the transmission capacity from the current level of just over 5,000MW to 7,000MW.

“The PPI is structured into various three phases, aimed at increasing power delivered to Nigerians to 7GW in first phase , 11GW in the second phase and 25GW in third phase.

“The project is to be executed at the cost of 2.3billion dollars  forms the phase 1 of the  PPI and is funded by a loan from a consortium of German Banks for 85 per cent of the contract sum; while 15 per cent counterpart funding is provided by the federal government.

“A Special Purpose Vehicle (SPV) called FGN Powerco is in the process of being set-up following Mr President’s approval.

“The SPV will warehouse the project’s contingent liability for accountability.

“We have also constituted the Nigerian Project Management Office (PMO) with the sole responsibility of providing project management of the project on behalf of the government,” he said.

Agba said that the government was also implementing the Transmission Enhancement Programme with key development partners to improve the sector.

“The World Bank, AfDB, JICA have raised 1.6 billion dollars for Transmission Rehabilitation and Expansion Programme (TREP), which is ongoing now with major projects as follows:

“The Alaoji-Onitsha, Delta Power Station-Benin and KadunaKano at 410 million dollars and 29 million dollars is intended to build a 330kV Double Circuit 62KM line between Birnin Kebbi and Kamba.

“The Lagos/Ogun Transmission Infrastructure Project (JICA) with 200 million dollars, Abuja Transmission Ring Scheme (AFD)-170 million dollars and Northern Corridor Transmission Project (AFD & EU) with 274million dollars,” he said.

The minister commended the NEF team for its tenacity and vision in building the platform into a credible vehicle for the exchange of knowledge, skills, ideas and proffering solutions towards the development of the Nigeria Electricity Supply Industry (NESI).

Also speaking, Dr John Momoh, the Chief Executive Officer (CEO) Nigerian Electricity Regulatory Commission (NERC) said the new tariff put in place would address the challenge from stakeholders in power sector.

Momoh said that the regulatory body would be monitoring service providers to ensure that quality services were provided for customers.

He said that with the presidential intervention in metering, meters would be provided for enumerated customers in a year or two.

Mr Adeyemi Kings, the National Chairman, Nigerian Institute for Electrical and Electronics Engineer (NIEEE) said there should be more infrastructural development in the sector to meet the demand of increasing customers.

The Chief Executive Officer of University College Hospital (UCH), Prof. Abiodun Otegbayo said the slightest power interruption can affect the results of a laboratory test and also affect treatment in healthcare.

According to the CEO, we need uninterrupted power supply on our equipment, patients and operations.

He said that the healthcare required remarkable investments and investing in power challenges will assist the sector.

In his welcome speech,Dr Daniel Adeuyi, NEF Chairman said  over 300 participants participated at the virtual conference and workshop.

“Globally, the grand challenge is how to recover quickly from the COVID-19 outbreak.

“Sustainable energy solutions can facilitate economic growth at local, national and regional levels.

“However, lack of access to modern and affordable energy services can reverse development,” he said.

Mr Adekunle Makinde, former National Chairman, NIEEE and the Co-Chair of NEF 2020, had earlier said that efforts was being made to feature four top-class workshops on Power Africa Nigeria Power Sector Programme.

“They are Women Leaders Energy Roundtable, Clean Energy Recovery Impact by All On, and the Africa Energy Ideas Competition Finals, led by NIEEENEF in collaboration with All On Hub.

“We challenge all stakeholders to act together in exchanging knowledge, building capacity and initiating new business to accelerate the pace of recovery and sustainable energy development in Nigeria,” he said.

Edited By: Ali Baba-Inuwa
Source: NAN

Short Link: https://wp.me/pcj2iU-3u2G

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